About the Company:
Precision Metaliks Ltd is engaged in the business of manufacturing Semi-finished Wheels by rendering value added services such as cleaning, washing, buffing, polishing, testing and packing.
Company converts semifinished / raw wheels to finished wheels by carrying our value added services such as Polishing, Buffing, Testing and Packing for company’s major client, Synergies Castings Limited, Visakhapatnam.
Company is also planning to offer these services to the USA market through Silver MetalX INC, USA by way of supplying finished Alloy Wheels with accessories to cater to the aftermarket.
Company also provides high-end design Engineering services, Analysis, Product Development, Prototyping, Tooling Design and various other services such as flow forming, skin cut services etc.
Company’s History:
Company was incorporated in the year 2012. Company’s Promoters are Abhishek Business Private Limited and Jayanthi Roja Ramani. The Company was initially engaged in the Business of Trading of the Metals prior to FY 2018-19.
After that, the Company commenced manufacturing activity from FY 2019-20 in the SEZ Unit.
Company’s SEZ Unit is situated at Visakhapatnam Special Economic Zone, Duvvada, Visakhapatnam, Andhra Pradesh – 530049. Under this Unit company carry out the manufacturing activities / process on Semi-finished Wheels by rendering value added services such as cleaning, washing, buffing, polishing, testing and packing.
Company’s Major Products / Services:
- Value added services on alloy wheels.
- Automated cleaning of Aluminium chips + briquetting into Ingots.
- Robotic polishing of alloy wheels.
- Other Engineering Services.
Value added services on alloy wheels.
Company converts semifinished / raw wheels to finished wheels by carrying our value added services such as Polishing, Buffing, Testing and Packing for our major client, Synergies Castings Limited, Visakhapatnam.
The Company is also planning to offer these services to the USA market through Silver MetalX INC, USA by way of supplying finished Alloy Wheels with accessories to cater to the aftermarket.
Robotic polishing of alloy wheels.
An important ‘finish’ of alloy wheels in the ‘premium’ segment are a ‘natural polished aluminium’ / ‘natural buff look’ of aluminium, and ‘chrome’ finish. Chrome plating process requires the semi-finished wheels to be perfectly polished, grinding, and buffed before they are plated.
Other Engineering Services.
Company also provide high-end design Engineering services, Analysis, Product Development, Prototyping, Tooling Design and various other services such as flow forming, skin cut services etc.
Breakup of Domestic & Export Sales: (in Lakhs)
Brief about Company’s Customers:
Synergies Castings Limited (SCL), India.
SCL is a Company having its manufacturing facility spread over an area of 1,00,000 sq mt. at Visakhapatnam SEZ as an EOU unit, currently having more than 1400 employees.
SCL is India’s leading non-ferrous component Company, manufacturing four-wheeler alloy wheels, aluminium castings and plastic components for domestic as well as global Automobile OEMs.
Silver MetalX INC (SMX)
SMX is a company based out of USA and engaged in the business of supply of aluminium wheels and chrome plated wheels to OEMs and aftermarket in USA.
Synergies Castings LLC, Sultanate of Oman (SCLLC)
SCLLC is a collaborative project between Oman’s Sovereign Wealth fund ODF + The Sultan’s Special Forces Pension Fund (SSPF), Bank of Sohar SAOG, 64% owned by these 3 entities and 36% owned by Synergies Castings Limited (SCL), India to set up an Alloy Wheel Manufacturing facility in Oman.
The Plant spread over an area of 2,00,000 sq mt. will have an installed capacity of 2.0 Mn wheels per annum, benchmarked at an average size of 18”.
Details of Order Book pending for execution as on November 30, 2021.
Company’s Present Capacity and Capacity Utilization:(Number of Wheels)
Company’s Projected Capacity and Capacity Utilization:(Number of Wheels)
Management Team:
- Mrs. Jayanthi Roja Ramani (Designation: Chairperson / Promoter Director)
- Sevvana Venkata Raman Rao (Designation: CEO & Whole Time Director)
Objectives of the Issue:
Offer for Sale: (Rs.21.93 cr )
- Meeting additional Working Capital Requirements.
- General Corporate Purpose.
Positives for the Company:
Cost effective, Precise and Automated Solutions.
- Company is specialized in finishing of Semi-finished Alloy Wheels. Company’s low-cost infrastructure and high-end precision technology enable company to provide quality services at competitive pricing compared to some of the competitors, which helps in winning customers.
Repeat Customer Orders.
- Company has been receiving repeat orders from customer. Synergies Castings group is company’s single largest customer since FY 2019 for all the products and services.
- Company has been receiving annual purchase orders from customers and supplies them throughout the year as per their requirements.
- In addition, company has secured orders for supply of finished alloy wheels along with accessories from USA aftermarket distributor and importer.
Intends to be a global player in the high-end precision Aluminium Alloy Wheels.
- Company intends to be a significant global player in the high-end precision Aluminium Alloy Wheels supply in aftermarket, and Alloy Castings Segment.
- To achieve this, the Company has developed competencies to supply the volumes, quality and on time delivery demanded by the global players in aftermarket.
- In addition to the existing operations,company intends to further expand into downstream value-added engineering and manufacturing processes such as Flow forming of semi-finished alloy wheel castings, Low Pressure Die Casting of Alloy wheels and other aluminum products for the auto industry.
Financials of the Company:
| (in Crores) | FY 19 | FY 20 | FY 21 | 30th Sept 21 |
|---|---|---|---|---|
| Revenue | 0.052 | 22.17 | 49.24 | 48.13 |
| Net Profit | 0.0046 | 0.82 | 1.49 | 2.14 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Precision Metaliks Ltd | 10 | 1.79 | 28.49 | 12.26% | 14.64 |
| Remsons Industries Ltd | 10 | 11.65 | 19.80 | 21.20% | 54.94 |
| Uni Abex Alloy Ltd | 10 | 54.12 | 11.26 | 19.24% | 281.24 |
| Investment & Precision Ltd | 10 | 0.95 | 315.68 | 0.64% | 146.93 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 19th January 2022 |
| Issue Closes on:. | 24th January 2022 |
| Issue Price | Rs.51 |
| Face Value | Rs.10 |
| Minimum Lot | 2000 |
| Minimum Investment | Rs.1,02,000 |
| Issue Constitutes | 26.45% |
| Issue Size | Rs.21.93 cr |
| Market Cap | Rs.82.92 cr |
| Listing at | NSE SME |
| Equity Shares Offered (Fresh) | 43,00,000 |
| Equity Shares Prior to the Issue | 1,19,59,066 |
| Equity Shares after the issue | 1,62,59,066 |
Also Read : List of Upcoming IPO’s in India List of Upcoming SME IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | on or Before 28th January 2022 |
| Initiation of Refunds | on or Before 31st January 2022 |
| Credit of Equity Shares: | on or Before 1st February 2022 |
| Listing Date: | on or Before 2nd February 2022 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 1.79 | 28.49 | 12.26% | 14.64 |
| Check IPO Allotment Status: |
|---|
Bigshare: http://www.bigshareonline.com/IPO/AllotmentBSE IPO Website: https://www.bseindia.com/IPO/Allotment |
| Company Contact Info: |
|---|
| Precision Metaliks Ltd 6-3-855/10/A, Flat No. 4A, Sampathji Apartments, Saadat Manzil, Ameerpet, Hyderabad – 500016, Telangana, India. Tel: +91 891 4884132 E-mail: cs@precision-metaliks.com Website: www.precision-metaliks.com |
| IPO Registrar Info: |
|---|
| BIGSHARE SERVICES PRIVATE LIMITED 1st Floor, Bharat Tin Works Building, Opp. Vasant Oasis, Makwana Road, Marol, Andheri East, Mumbai – 400 059, Maharashtra, India Tel. No.: +91 22 6263 8200 Fax. No.: +91 22 6263 8299 Email: ipo@bigshareonline.com Website: www. bigshareonline.com |
| Lead Manager to the Issue: |
|---|
| FIRST OVERSEAS CAPITAL LIMITED 1-2 Bhupen Chambers, Dalal Street, Fountain, Mumbai – 400 001, Maharashtra, India. Tel No.: +91 22 4050 9999 Investor Grievance Email: investorcomplaints@focl.in Website: www.focl.in |
